How to get a home loan this year?

With today’s low mortgage rates, many households and individuals want to become homeowners. They will have to present guarantees of professional stability, prudence in the management of their accounts, and if possible have savings. The conditions are strict but everyone has a chance, here are the conditions to obtain a mortgage.

When there is only one borrower

When there is only one borrower

When the borrower is an employee

If the borrower is an employee, he must hold an open-ended employment contract. If it is still in a trial period, the credit organizations will agree to study the file, but will not definitively grant the loan until the trial period has passed.

If the borrower works on a fixed-term contract, on an interim basis, as an intermittent of the show or in any other configuration consisting of short assignments, he can still take out a mortgage. However, most credit agencies will want to see if the candidate has worked continuously for the past 2 years.

Salespeople receiving commission

The salesmen whose remuneration is made up of a fixed salary and a commission, tend to frighten the banks. The latter will need to make an average of the commissions collected over the last 18 months, see over the last 2 years. This rule applies even if the salesperson holds a permanent contract.

When the borrower is a civil servant

In the public service, the trial period is 1 year, at the end of which the agent will be established. Being a civil servant is a good point for a credit organization, due to the sustainability of the income. However, no mortgage application will be accepted during the first year of tenure. Once established, the official can then borrow.

When you are self-employed

When the applicant for a mortgage is established on his own account, the reaction of the credit organizations will be different depending on the nature of his activity. We will more easily trust a lawyer or an architect than a construction worker. A lender will generally want to consult 2 balance sheets plus an accounting statement for the current year. This provision makes it generally difficult to take out a mortgage before 2 years of activity when you are self-employed.

When there are 2 borrowers

When there are 2 borrowers

A sustainable income at least in the couple

A couple, one of whose co-borrowers is on a CDD, will be able to benefit from a mortgage if the other is on a CDI, or is established in the public service. The same rule applies if one of them is installed on his account. The other must have a certain professional stability, in the form of a permanent contract or a position in the public service as a holder.

The importance of professional experience

A couple of auto-entrepreneurs will be able to obtain a mortgage if they can show at least 2 years of activity with a positive balance. A couple of temporary workers also have their chances, if they have worked continuously during the last 2 years. The economic sector plays a role in the opinion of lenders on the strength of borrowers. A couple working in computer technology reassures more than a couple working in the mining industry in France.

Banking behavior of borrowers

Banking behavior of borrowers

No overdraft

Borrowers who have had bank overdrafts in the past 6 months or even the past 12 months will have to wait. Credit unions have a negative view of these mortgage loan applicants who are already struggling to manage their own accounts, and who want to increase their expenses even more.

Monthly savings based on rent

The relationship between the amount of the borrowers’ rent, that of their monthly savings and that of the monthly payments are very important.

If a couple pays their rent $ 800, they apply for a mortgage with monthly payments of $ 1,200, their bank account should show a positive balance of $ 400 at the end of the month.

If a couple pays their rent $ 800, they apply for a home loan with monthly payments of $ 1,200, and their bank account is at $ 0 at the end of the month, they will not inspire confidence. The potential lender will wonder how he can find the remaining $ 400?

Savings if possible

Banks especially like savers. So much so that when a borrower has a personal contribution, some banks may prefer to place it on their financial products, rather than in real estate. In any event, a borrower capable of saving is able to use the passbooks and life insurance offered by the banks.

 

Do you really know everything about consumer credit?

From January to September, the number of consumer loans granted by banks increased by 6.3% compared to last year. Back on the particularities of this product which is on the rise.

Consumer credit is a loan granted to an individual by a bank or a credit institution. Intended for the purchase of a consumer good (a household appliance, furniture, a vehicle, etc.), it cannot be used for the acquisition of real estate. Although its operation is simple and the restrictions are few, there are however several types of consumer credit, which each meet different needs. Explanations.

 

How does consumer credit work?

consumer credit work?

The amounts granted under a consumer credit amount to at least $200 and are capped at $75,000. The repayment duration of this type of credit:

  • Must be greater than 3 months.
  • Must be spread over a period of between 3 months and 3 years when the amounts borrowed are from 200 to 3,000 dollars.
  • Must be between 3 months and 5 years when the amounts borrowed are greater than $3,000.

A consumer credit is granted by a lending organization after studying your file: state of health, professional situation, financial capacity, etc. In order to verify that you will be able to repay the loan, the lender is now obliged to consult the Personal Credit Repayment Incident File (FICP) before granting you the loan.

 

What are the advantages of consumer credit?

consumer credit?

If the interest rates applied can be high, consumer credit has a number of advantages:

  • It can be of great help if you are not able to buy a good on your savings alone.
  • It helps smooth the financial effort over time and better manage your budget, especially since its interest rate is fixed, as well as the amount of its monthly payments.
  • It is flexible, leaving the borrower the choice of the formula that suits him best (amount of monthly payments, repayment period, etc.).

 

What are the main forms of consumer credit?

What are the main forms of consumer credit?

One of the most common consumer credit formulas is the personal loan. It does not imply that the borrowed capital is allocated to a particular purchase and the borrower can use it as he sees fit (purchase, service, etc.). This is not the case for the assigned credit (car, work) which, as its name suggests, is intended for the purchase of a property defined at the time of subscription. Thus, the credit must only be used to finance the property in question and proofs may be requested from a certain amount. In any case, in either case, the rate and duration of repayment are freely set in agreement with the lender.

For its part, revolving credit (also called revolving credit) provides the borrower with an amount that he can use as he wishes. This amount is replenished over the reimbursements. If revolving credit is often associated with a credit card, the borrower can request at any time a reduction in the amount of the credit, or even the suspension or termination of the contract.

Another option in consumer credit is rental with a purchase option (LOA) or leasing. Praised for the purchase of a vehicle, it consists of the payment of a monthly rent which allows in fine to acquire the good in question at the end of the contract.

Finally, be aware that consumer credit covers a much broader reality than that commonly accepted. A payment delay, a bank overdraft or even a payment facility can be considered as consumer credits.